Verizon Sues FCC Over Data Roaming Rules

Verizon Wireless has filed suit against the Federal Communications Commission over its data roaming rules, arguing that the commission does not have the authority to establish such restrictions.

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Verizon Wireless has filed suit against the Federal Communications Commission over its data roaming rules, arguing that the commission does not have the authority to establish such restrictions.

According to the suit, filed last week in the U.S. Court of Appeals for D.C., the FCC's data roaming order is: in excess of the commission's statutory authority; is arbitrary, capricious, and an abuse of discretion; contrary to constitutional right; and otherwise contrary to law.

Verizon wants the court to throw out the FCC's rules and provide it with any damages it deems necessary.

In early April, the FCC handed down rules that will require wireless carriers to offer "reasonable" data roaming rates. The rules will let wireless users stay connected when they travel outside their own network's coverage areas by connecting to another provider's network, the FCC said.

The rules, which were approved on party lines by a vote of 3 to 2, are important to smaller carriers that told the FCC that they cannot compete against larger wireless providers like Verizon and AT&T without data roaming agreements.

The FCC declined to set exact rates for data roaming agreements, "instead leaving it to the parties to set their terms," FCC chairman Julius Genachowski said at the time. Complaints about data roaming can be filed at the FCC, where they will be handled on a case-by-case basis, the agency said.

At the time, Verizon said the move "represents a new level of unwarranted government intervention in the wireless marketplace."

"By forcing carriers that have invested in wireless infrastructure to make those networks available to competitors that avoid this investment, at a price ultimately determined by the FCC, today's order discourages network investment in less profitable areas," Tom Tauke, Verizon executive vice president of public affairs, policy, and communications, said in a statement. "That is directly contrary to the interests of rural America and the development of facilities-based competition and potential job creation. Therefore, it is a defeat for both consumers and the innovation fostered by true competition."

Verizon is not afraid to tangle with the FCC. Earlier this year, Verizon sued the commission over its net neutrality rules, again arguing that the FCC had no authority in the matter. MetroPCS filed a similar suit, but in April, a court threw out both cases because they filed too soon. Verizon has vowed to re-file on the net neutrality issue when it is allowed to do so; MetroPCS has declined comment.

Chloe Albanesius has been with PCMag.com since April 2007, most recently as Executive Editor for News and Features. Prior to that, she worked for a year covering financial IT on Wall Street for Incisive Media. From 2002 to 2005, Chloe covered technology policy for The National Journal's Technology Daily in Washington, DC. She has held internships at NBC's Meet the Press, washingtonpost.com, the Tate Gallery press office in London, Roll Call, and Congressional Quarterly. She graduated with a bachelor's degree in journalism from American University...
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